CCG(SH:605099) Sou Hu Cai Jing·2025-06-11 14:51Core Viewpoint - The news highlights the contrasting fortunes of the artificial turf industry, with the rise of certain companies like Co-Creation Turf and the failure of Qingdao Qinghe to successfully list on the A-share market, primarily due to financial instability and operational challenges. Group 1: Market Performance - Since the start of the Scottish Super League in May, the football concept stocks have surged, with a cumulative increase of 15.72% in June, while Co-Creation Turf's stock price rose over 80% in the same month [1] - Qingdao Qinghe, the world's second-largest artificial turf company, announced the withdrawal of its IPO application after three years of efforts [1] Group 2: Operational Challenges - Qingdao Qinghe's strategy focused on overseas expansion has led to operational issues and significant debt, resulting in high pressure on its cash flow [2] - The company has faced rising hidden costs in overseas production due to labor cost increases and safety issues, impacting profitability [2] - A fire at Qingdao Qinghe's Mexican factory caused a loss of approximately 59.63 million yuan, equivalent to 43.85% of its net profit for the first half of 2024 [2] Group 3: Financial Performance - Despite continuous revenue growth, Qingdao Qinghe's accounts receivable reached 490 million yuan, accounting for 20.58% of total assets, indicating potential cash flow issues [3] - The company has experienced significant fluctuations in profit due to a consistently low gross profit margin compared to industry averages [3] Group 4: Competitive Position - Qingdao Qinghe has lost a substantial number of clients, with 555 clients exiting compared to only 237 new clients, leading to an 11.81% revenue loss from exiting clients [4] - The company's low research and development investment, at only 1.50%, contributes to its lack of product pricing power despite holding 80 patents as a FIFA supplier [5] Group 5: Funding and Debt Issues - Qingdao Qinghe has increasingly relied on high-interest loans, with borrowing rates reaching as high as 40%, exacerbating its financial strain [6] - The company planned to raise 1.09 billion yuan through its IPO, with a significant portion allocated to its Vietnamese production base and working capital, indicating a need for financial survival rather than growth [8]